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1. Study the PPC diagram below and answer the questions that follow: Switzerland's PPC (chocolate and watches) Chocolate (millions of bars) 54 3 7
1. Study the PPC diagram below and answer the questions that follow: Switzerland's PPC (chocolate and watches) Chocolate (millions of bars) 54 3 7 2 68 B X Z O 1 2 3 4 5 6 7 8 9 Watches (thousands) a. Identify the points on Switzerland's PPC that represent an efficient use of the country's land, labor and capital resources. Briefly explain what makes these points "efficient". b. Identify the points on Switzerland's PPC that represent an inefficient use of the country's resources. Briefly explain what makes these points "inefficient". c. Calculate the per watch opportunity costs of moving from i. Point A to point B
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ANSWER Solution 1 a The points on production possibility curve A B C and D are efficient p...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
